Mark Bower

Mark founded MoneyMaxim in 2008, with the aim of delivering an impartial and independent service. Mark is a regular money saving expert in the press and writes regular news and articles for the MoneyMaxim news pages sharing his views on banking, personal insurance and the utilities (gas, electricity, mobile and home phones, broadband and pay TV) market with customers.

16 March 2012

Over half of drivers will switch to a “black box” insurance policy

Black Boxes or Transponders to rise in popularity as driver seek to save on car insurance

The option of turning to a telematics-based car insurance policy might attract up to 57% of UK motorists by 2017, new study has shown.

The idea of paying less for their car insurance policy if they have a ‘black box' installed in their vehicle is seducing a high number of cash-strapped drivers.

A new study from a leading comparison site found that up to 57% of UK motorists will switch to this type of insurance in only five years.

After asking a sample of British drivers, research found that a great majority of them (92%) think that their car insurance premiums should be based largely on the way they drive. Almost all of them (97%) consider that careful drivers should be rewarded with cheaper insurance.

Furthermore, six in ten motorists believe premiums should actually be based on ‘where they drive and the time of day', while 49% consider they should be based largely on age and gender instead.

When asked about whether they would switch to a ‘black box' policy, 59% of the respondents aged 55 or over said they will probably switch to one of these policies in the next five years; 19% of all respondents said they would happily consider this option at their next renewal.

Cheaper car insurance

Many drivers are looking at ways of getting cheaper car insurance. While a number of them would undertake changes such as installing a ‘black box' to bring the costs down, a large number of drivers are not aware of the situations that could actually increase (or even invalidate) their car insurance policy.

Remember that if you modify your vehicle by installing increased performance badging or non standard paintwork, for example, you may have to pay more for car insurance. Your provider could argue that this equates to car modification and ask for a ‘change in circumstances charge' or ‘in year policy adjustment fee'.

Moneymaxim aims to inform its visitors through its journalistic sourced
information, but things change rapidly in our market and we cannot guarantee
everything will be perfectly up to date. Please do be aware you use the
information at your own risk, that the information provided is not financial
advice and that your own independent research is essential to make sure that any
product or service used is right for your circumstances. We cannot accept
liability for any decision you take as a result of information provided on
moneymaxim. This service is free to you but to operate this service moneymaxim
may receive commissions from the partners you are referred to.